According to Charles Whiteley, ambassador of the European Union (EU) delegation to Bangladesh, a free trade agreement (FTA) between Bangladesh and the EU will not be implemented any time soon.
Additionally, he stated that the bloc's lack of interest in the matter as well as its complexity makes the signing of an FTA with Bangladesh at this time impossible.
“This is not going to happen because of the degree of complexity, and the trade relations between the two sides are not yet at the stage where we would be genuinely interested in the EU side to negotiate an FTA”, he added.
The ambassador revealed it while speaking at an event titled “Strengthening Bangladesh-EU Trade and Economic Cooperation: Issues and Policy Priorities” at a hotel in the capital.
The Research and Policy Integration for Development (Rapid) and the private German non-profit organization FES Bangladesh, jointly organized the event.
Regarding the FTA with Vietnam, he said that the EU had wide-ranging interests in different areas and also benefits European business including service sectors.
“I hope Bangladesh will make its businesses more balanced, wide-ranging, and clinically assessed to facilitate easier access of EU businesses in Bangladesh,” he added.
Bangladesh is likely to graduate from LDC in 2026, and the three-year transition is long enough for the businesses and government of the country to be adapted to the post-LDC reality, he added.
“Considering the social development, Bangladesh made a huge improvement,” he added, saying that the entire focus of the country – financially, politically, and economically – has to be on GSP Plus.
“Bangladesh needs to be connected and continuously consulting with the European parliament. To be honest, Bangladesh has brilliant ambassadors in Brussels and they have the ability to be connected with the EP,” he added.
He also said that the country also needs to focus on trade diversification.
Bangladesh will have to sign trade deals with trading partners to ensure preferential market access following its graduation to a developing nation in 2026, he added.
In the speech of the chief guest, Sharifa Khan, secretary of the ERD, said that the EU has always been a good partner of Bangladesh.
“When we talk about tariffs, the Doha Round is yet to come into effect. If the Doha Round is complete and effective, there will be no more problems with tariffs,” she added.
She also said that the tariff system of the EU has some issues like where the RMG product is exported the most, the highest tariff has been imposed on it.
“This is putting pressure on our industry entrepreneurs. It needs to be considered,” she added.
BGMEA Director Vidiya Amrit Khan said that there are multiple areas of cooperation between the EU and Bangladesh including GSP Plus, EBA and many more.
“The RMG sector of the country recovered from Covid-19 but is again struggling due to the turbulent economy created by the Ukraine-Russia war,” she added.
She said that Bangladesh is the leader in green manufacturing but still striving for a fair price.
“The EU buyers should ensure fair prices and also support in the required sectors like technology,” she added.
BKMEA Vice President Fazlee Ehsan Shameem said that they are not afraid regarding the LDC graduation but there is room for improvement.
“We are doing everything in green manufacturing, ESG, but still struggling for fair prices,” he added.
MA Razzaq, chairman of Rapid, presented the keynote, where he said that the EU emerged as an indispensable trade and development partner for Bangladesh.
The EU is by far the largest export market as almost half of Bangladesh's merchandise exports are destined for the EU.
“Combined exports to the EU and UK expanded rapidly from $2.5 billion in FY01 to $25 billion in FY21,” he added.
He also said that Bangladesh still has huge export potential in the EU as it is estimated that currently only 60% of export potential is utilized.
“Presently, untapped additional export potential of $18 billion in the EU and the $6.3 trillion EU import market means vast export opportunities,” he added.
He suggested that Bangladesh should develop a longer-term strategy and action plan for strengthening Bangladesh-EU relations (including reform strategy and financing options).
Moreover, securing a full-fledged free trade and investment agreement with the EU for maintaining the current market access for exports and attracting investment.
Syed Muntasir Mamun, DG (international trade, investment, and technology) of the Ministry of Foreign Affairs also spoke at the event.
Felix Kolbitz, resident representative of FES marked the welcome speech and M Abu Eusuf, executive director of the RAPID moderated the event.
